Requires certain considerations by rent guidelines board in NYC and Westchester, Nassau and Rockland counties; grants board subpoena power

2 Co-sponsors

• Ruben Diaz
• Liz Krueger

BILL NUMBER:S3528

Title of bill

An act to amend the emergency tenant protection act of nineteen seventy-four and the administrative code of the city of New York, in relation to the rent guidelines board

Summary of provisions

This bill would operate to create a more reliable data base for the establishment of rent guideline in the areas covered by the Emergency Tenant Protection Act (ETPA). Rent guideline boards would be given the tools necessary to accumulate audited statistical samples of income and operating costs for the apartment buildings in their areas. The implications of these procedures will give the rent guidelines greater integrity and should result in better owner and tenant acceptance of the results of the guideline setting processes. This bill requires rent guidelines boards in New York City, Westchester, Nassau, and Rockland counties to utilize statistical samples of audited income and expense statements from rental buildings within their respective jurisdictions as one basis for the establishment of annual rent guidelines. The boards are given subpoena powers and owners are barred from collecting rent if they fail to provide relevant data requested by a guidelines board. The county boards are also required to hold at least one public hearing before the promulgation of guidelines.

Justification

The setting of annual rent guidelines is at the very heart of the ETPA system. The data that has been available to rent guidelines boards has been imperfect and, in many instances, of doubtful economic validity. In the counties outside of New York City the response rate by owners to request for income and expense statements has been very poor. The data that is provided may well be skewed to reflect the operating experience of mainly the least profitable buildings. The information that is received is not audited by an agency. Reliance on such data by the guideline boards opens them to justifiable public skepticism as to the fairness of the guidelines. This legislation is necessary to restore public confidences in the process leading to the establishment of rent guidelines.

Legislative history

03/07/07 REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT 01109/08 REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT 04/07/09 REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT 01/06/10 REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Fiscal implications

The costs of compiling statistical samples will be offset by elimination of less effective presently used data gathering techniques.

Effective date

This act shall take effect immediately provided that the amendment to section 4 of the emergency tenant protection act of nineteen seventy four made by section one of this act shall expire on the same date as such act expires and shall not affect the expiration of such act as provided in section 17 of chapter 576 of the laws of 1974, as amended; provided that the amendments to section 26-510 of the rent stabilization law of nineteen hundred sixty-nine made by sections two and three of this act shall expire on the same date as such law expires and shall not affect the expiration of such law as provided under section 26-520 of such law.